Target ROAS is a powerful bidding strategy in Google Ads that allows advertisers to optimize their campaigns for revenue. It's a popular choice for e-commerce businesses but can also benefit lead-focused campaigns when configured correctly.
In this blog post, I'll explore the key aspects of Target ROAS, including its benefits, general guidelines, and recent developments, along with some recommendations.
Benefits of Target ROAS: Target ROAS focuses on maximizing conversion value within a set ROAS target. While it's commonly used in e-commerce for immediate revenue generation, it can also work for lead generation campaigns by assigning a value to conversions.
This approach can lead to higher-quality leads and increased revenue, as opposed to simply optimizing for leads, which may result in lower-quality leads with higher cancellation rates.
General Guidelines for minimum number of conversions for Target ROAS:
For a successful implementation of Target ROAS, you need to consider the number of recent conversions in your campaign or account. Google recommends the following minimum conversion thresholds:
Search campaigns: At least 15 conversions in the past 30 days.
Display campaigns: At least 15 conversions with valid conversion values in the past 30 days across all campaigns combined (no longer requiring a history of conversions for new Display campaigns).
App campaigns: At least 10 conversions daily or 300 conversions in 30 days.
Discovery campaigns: At least 75 conversions in the past 30 days, with 10 of those occurring in the past 7 days.
Video Action Campaigns: At least 30 conversions in the past 30 days.
For campaigns that struggle to reach the 15-conversion threshold, consolidation of similar campaigns can be a solution. Combining campaigns with similar objectives and themes can provide the consolidated data needed to make Target ROAS more effective.
New Soft Guidelines for minimum number of conversions for Target ROAS:
Account Level Conversions: Recent enhancements to Target ROAS have introduced a significant change. Instead of requiring a minimum threshold of 30-day conversions at the campaign level, there's now a softer guideline of +15 conversions in the past 30 days at the conversion tracking level (account or MCC level).
This means that if your account's conversion action has 15 conversions in the past 30 days, any campaign in your account using that conversion action can benefit from the Target ROAS bidding strategy, regardless of which campaign generated the conversions.
However, it's important to note that these new guidelines for 15 conversions at the account level's conversion action apply to single campaigns. If you're using a portfolio bidding strategy across multiple campaigns, each campaign within the portfolio should individually have a minimum of 15 conversions in the past 30 days to switch to Target ROAS.
Recommendation: Despite Google's guideline of a minimum of 30 or 15 conversions in the past 30 days, whether at the campaign or conversion action level, I would suggests aiming for at least 50 conversions in the past 30 days for search campaigns before transitioning to Target ROAS. More data can lead to improved Target ROAS performance.
However, every campaign is unique, and experimentation is essential to determine the most suitable bidding strategy for your specific goals.
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